LOUISVILLE, Ky. (WDRB) -- University of Louisville officials announced Friday that Norton Healthcare has walked away from negotiations over Kosair Children's Hospital for the second time in the past week.

U of L stated that Norton also rejected an offer for both sides to meet with the governor and attorney general in order to reach an agreement.

This is the latest setback in the battle between Norton and U of L, just as it appeared the two sides were on the verge of a resolution.

After Norton announced in August 2013 a possible partnership with the University of Kentucky Healthcare and Kentucky Children's Hospital in Lexington, U of L threatened to evict Norton from Kosair.

U of L claimed the partnership would violate a 1981 agreement that Norton must use the property for university benefit.

Norton filed suit in response, saying that U of L had no right to make such a move.

Friday, Norton Healthcare spokesperson Tom Johnson released the following statement:

"Norton Healthcare and U of L have had a successful partnership going back more than 80 years – one that has served our region well – and we are fully committed to continuing this relationship.

"It's unfortunate that our recent discussions have not lent themselves to the establishment of an updated and longer term affiliation agreement. In the meantime, our existing affiliation agreement and well over 130 individual contracts with U of L stands and continues to bind us together. The great care and great service Louisville's children have always received continues to be offered every day at Kosair Children's Hospital."